Strong economic growth, abundant capital, and a favorable supply and demand environment led to broadly stable capitalization rates for U.S. commercial real estate assets in the second half of 2018, according to the latest research from CBRE. The CBRE North America Cap Rate Survey shows cap rates remained generally unchanged across the sectors in H2 2018.

CBRE Global Chief Economist Richard Barkham says, “The U.S. remains the best performing of the advanced economies, due to job growth and earlier tax cuts. Cap rates were very stable in 2018, and pricing firm. We see this situation continuing in 2019, with a weaker global economy putting downward pressure on the 10-year treasury. Real estate spreads remain very competitive.”